VZCZCXRO0190
PP RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHBK #0234/01 0281013
ZNR UUUUU ZZH
P 281013Z JAN 10
FM AMEMBASSY BANGKOK
TO RUEHC/SECSTATE WASHDC PRIORITY 9734
RHEHNSC/NSC WASHDC PRIORITY
RUEHC/DEPT OF LABOR WASHINGTON DC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
INFO RUEHCHI/AMCONSUL CHIANG MAI PRIORITY 7576
RUCNASE/ASEAN MEMBER COLLECTIVE PRIORITY

UNCLAS SECTION 01 OF 02 BANGKOK 000234 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON EINV ELAB SENV TH
SUBJECT: Baby Steps Toward the Resolution of the Map Ta Phut Impasse 
 
REF: A) 09 BANGKOK 701 B) 09 BANGKOK 1909 C) 09 BANGKOK 2597 D) 09 
BANGKOK 2678 E) 09 BANGKOK 2742 F) 09 BANGKOK 3068 
 
BANGKOK 00000234  001.2 OF 002 
 
 
Sensitive But Unclassified.  For Official Use Only. 
 
¶1. (SBU) Summary: While the Royal Thai Government has made some 
progress towards the resolution of the Map Ta Phut impasse, the end 
is not yet in sight.  Some of the necessary guidelines that will 
enable companies to comply with Article 67 of the Thai Constitution 
have been established; however, until all requirements are clearly 
spelled out, the companies with 64 suspended projects cannot even 
begin the formal application process.  Once established, the 
procedures will require technical environmental and health 
assessments, public hearings, and an assessment from an independent 
body, a process which could take up to 6 or 8 months.  Hopes for a 
faster resolution via an alternate path were dashed on January 22 
when the Central Administrative Court refused to review the 
petitions of 30 projects that were seeking permission to proceed. 
The court ruled that the projects had yet to comply with Article 67, 
so must remain suspended in accordance with the September and 
December court orders.  End Summary. 
 
Limited Progress Towards Resolution 
----------------------------------- 
 
¶2. (U) The Royal Thai Government (RTG) has established some of the 
necessary guidelines that will enable companies to comply with 
constitutional mandates for environmental and health impact 
assessments.  Article 67 of the 2007 Constitution requires that 
prior to the operation of any project or activity that "may 
seriously affect the community with respect to the quality of the 
environment, natural resources and health," the following must be 
completed: an environmental impact assessment (EIA); a health impact 
assessment (HIA); a public hearing for affected citizens; and an 
assessment from an independent body consisting of representatives 
from environmental and health organizations as well as academia. 
 
¶3. (U) On December 29, the Cabinet approved a Ministry of Natural 
Resources and Environment notification containing HIA, EIA, and 
public hearing guidelines.  The guidelines were based on 
recommendations of the four-party panel (see ref F), which is 
chaired by former Prime Minister Anand Panyarachun and includes 
environmentalists, community activists, representatives from the 
business sector, and government officials.  This notification 
established the guidelines for three of the four requirements stated 
in Article 67. 
 
¶4. (U) On January 12, the Cabinet approved a plan to address the 
development of the independent body that would consist of 
representatives from environmental and health organizations and 
academia, the fourth requirement of Article 67.  According to a 
member of the four-party panel, the plan is to develop a 13 member 
temporary independent body to bridge the gap until a permanent body 
can be approved by an Act of Parliament, which is expected to take 
over a year.  The 13 members of the temporary body will be selected 
by a 19 member coordinating committee that will work together with 
selected NGOs and academics to establish the independent body.  The 
independent body will draft its own administrative rules and 
assessment guidelines.  While the independent body will have no 
decision making power, it will evaluate the EIAs and HIAs before the 
licensing authority can issue permits.  Thus the role of the 
independent body will be critical to the operation of companies.  On 
January 19, the Cabinet approved membership of the new coordinating 
committee.  For the most part, the committee has the same membership 
as the four-party panel; former Prime Minister Anand will again 
serve as the Chairman. 
 
¶5. (U) Still to be done by the four-party panel is to define exactly 
which projects will be considered potentially "harmful" and must 
comply with Section 67.  Work has reportedly been done, but a list 
has not yet been issued. 
 
But End Still Not In Sight 
-------------------------- 
 
¶6. (U) While the RTG has developed some of the necessary 
regulations, establishment of the regulations and independent body 
will merely permit the companies to begin the process.  According to 
Prime Minister Abhisit in his January 14 Foreign Correspondents' 
Club of Thailand speech, completion of the HIA, EIA, public 
hearings, and assessment from the independent panel could take up to 
6 or 8 months.  After that, there will likely be additional time 
waiting for the licensing authority to review the evaluation of the 
independent body and the public hearings before receiving approval 
to proceed. 
 
A New Legal Challenge 
 
BANGKOK 00000234  002.2 OF 002 
 
 
--------------------- 
 
¶7. (SBU) On January 20, the Stop Global Warming Association filed a 
petition with the Supreme Administrative Court seeking revocation of 
the January 12 PM's Office Ministerial Regulation and the 
appointment of the coordinating committee.  The petition argued that 
hearings should have been held to allow for public comment prior to 
the action being taken.  When asked about this petition, Dr. Somrat 
Yindepit, a member of the four-party panel, dismissed any concerns. 
In his opinion, this was simply a stalling tactic on the part of the 
NGO. 
 
No Way Around for 64 Projects, Including Dow 
-------------------------------------------- 
 
¶8. (SBU) Hopes were dashed on January 22 when the Central 
Administrative Court refused to review the petitions of 30 projects 
that were seeking to be released from suspension.  The court stated 
that the projects had not yet complied with Article 67 and thus are 
still suspended according the September Central Administrative Court 
order and the December Supreme Administrative Court order.  These 30 
projects (including 4 from Dow) are part of the 64 projects that 
remain suspended in the Map Ta Phut industrial area.  (Note:  The 
December Supreme Administrative Court ruling (Ref F) upheld the 
suspension order of 65 of the 76 projects originally suspended by 
the September injunction (Ref C).  On December 23, the number of 
suspended projects dropped to 64 when the Central Administrative 
Court ruled that Siam Yamato Steel, a joint venture of Siam Cement 
Group, could resume operations because the firm received an 
operating license two days before the promulgation of the 2007 
constitution and thus was not subject to the terms of the 
injunction.  End Note.) 
 
¶9. (SBU) Dow representatives are extremely upset with this latest 
development, as the government recommended that the companies 
involved appeal to the courts and Dow assumed that by doing so some 
arrangement had been worked out between the government and the court 
that would allow at least some projects to move forward.  Now it is 
clear that the government had made no such effort.  Dow will now 
recommend that the RTG, the original party to the initial suit, 
resubmit the petitions on behalf of the companies.  According to Dow 
representatives, the lack of clarity and required procedures will 
have serious implications for their project if they are unable to 
resume operations within 6 months.  Dow CEO Andrew Liveris is 
planning to meet with the Prime Minister on the margins of the World 
Economic Forum in Davos to express the company's concerns and to 
seek guidance on the way forward.